CryptoPaddy79
Registered User
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We had communication from DLRCOCO in 2019 about our AH property. Our situation seems to be similar to your Easter, Our clawback only kicks in if we sell for over the original market price, otherwise if we sell the council gets everything. Our clawback would be 20% now aswell but the clawback is never going to get an opportunity to come into play for Us as the property is never going to sell for over the original market price anyway.Hi haven’t sold myself yet, but recently had a communication from the council around how it will work. I thought I’d be due a 20% reduction in clawback if I sold now, but council saying that anything between AH purchase price and sale price (if below original MV) goes to them. Yet if I sold for anything over the original MV, I’d get a 20% discount on all of the clawback between the AH purchase price and MV. I don’t get it.
Your right different councils are doing different things. we have no choice but to sweat it out till our contract ends.It looks to me like different councils are doing different things. Over on boards there’s a post from someone saying they got a clawback % reduction in year 11 when they sold below the MV. This was DCC. I’m with DLRCC. My property would sell for €40k over purchas price now, but below MV.
Well said Easter & best of luck with your move going forward. DLRCOCO have given us the option to rent too but of course they'll freeze the contract while we're renting which is not really a goer for Us as we just wanna get through the contract.Same situation, ours will never sell for the MV. I don’t understand how some councils will give the clawback reduction and others won’t. They are all working out of the same legislation. I would love to hear directly from someone who has got the clawback reduction. If there is anyone out there please post or send a private message! If others have got a reduction under the MV, there is a legal challenge th
I will either sell now or rent our place out. I know renting will extend the clawback period, but I don’t care, we just need to move.
What really doesn’t seem to make sense is that if your property sells for €100 over the MV, suddenly you would get a % reduction of everything between the purchase price and MV. I don’t see how that can be the case?
Feel free to pm me if you wanted to exchange or compare information given recently.
Equally if anyone else has sold after 10 years of ownership and has had a different experience, would love to hear from you!
A question on the scenarios above.
As you approach the end of your mortgage (reducing the amount outstanding to a relatively small amount) would it be possible to clear the mortgage with the council (maybe through a bridging loan or similar)and then sell without any clawback or calculations to worry about?
Please forgive my ignorance on bridging loans etc and I do appreciate that the above depends on financial health etc. However, if this was possible it would allow for people to sell and move whilst keeping some of the profit made on the sale.
I remember from previous posts (many years ago) that different councils were applying different terms and conditions. One of these related to the renting of the properties. These different approaches may mean that there is more than one answer to my suggestion.
I cannot see in my loan agreement how to work out the clawback, it seems to me that this clawback is not very well understood by anyone.After the 10th year, the clawback reduces by 10% for every subsequent year you are resident in the property. So yes, you don’t get any reduction until your 11th year.
Hello OPHi Folks;
Hoping someone with experience could help me out with this. There is some brilliant worked examples and advice on here but I cant seem to find one that fits my situation albeit some really close ones - just posting this as a sanity check and hoping someone can lend some expertise.
My Situation....
I bought an affordable house with Fingal Co. Co in Jan 2005, brilliant opportunity and have loved living here, but a wife and two active kids later see's us looking to get some where with a little bit more space.
€285,000 "Market Value"
€185,000 Affordable price paid
35% Discount
Approx. sales price I may be able to get is around €240,000
We are 15 years here so we will be 5 years into the 10% reduction each year after 10 years which should reduce the clawback by 50%.
I am just wondering when does the clawback kick in...is it after "market value" €285,000 is reached or on the total sales price at the time of sale?
My calculations are: (Hope I am wrong)
Sales Price - €240,000
Less owed on original mortgage - €185,000 (we settle outstanding money owed on mortgage and keep the balance)
Profit for Fingal Co.Co - €240,000 - €185,000 = €55,000
Profit for us - €0
(we can only make a profit after the €280,000 original valuation is reached)
Any help would be greatly appreciated.
Why mind blown? Legislation always trumps contracts.May I ask where did you get the formula for working this out!? As previously stated, if the clawback is not mentioned in the loan agreement, how on earth are they able to enforce this!? Mind Blown
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